It's been a week since Russia invaded Ukraine. The European Union removed 7 Russian banks, consisting of Bank Otkriti, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank, VEB and VTB BANK, from the SWIFT system. The sanctions keep coming. For a long time, there was talk of removing Russia from the international money transfer system SWIFT. Taking a concrete step in this regard, the European Union (EU) decided to remove 7 Russian banks from the SWIFT system.
SWIFT DECISION ENTERED
The decision to remove Russian banks from the SWIFT system entered into force after being published in the EU Official Journal. Accordingly, Bank Otkriti, Novikombank, Promsvyazbank, Bank Rossiya, Sovcombank, VNESHECONOMBANK (VEB) and VTB BANK will be removed from the SWIFT system.
BANK TRANSACTIONS WILL BE FINISHED AFTER 10 DAYS
In line with the decision, the transactions of the banks will end after 10 days. Participation in Russian Direct Investment Fund projects was also prohibited. It is prohibited to supply, supply, transfer or export euro banknotes for use to any natural or legal person in Russia.
Ursula von der Leyen, President of the EU Commission, shared on her social media account, “The decision taken today to cut off the connection of important Russian banks with the SWIFT network will send another very clear signal to Putin and the Kremlin.” used the phrase.
MORE THAN 200 COUNTRIES CONNECTED TO SWIFT SYSTEM
Belgium-based SWIFT enables transactions between financial institutions to be carried out in a secure and standardized manner. Currently, most of the cross-border payments in the world are carried out with SWIFT, to which more than 200 countries and more than 11 thousand financial institutions are affiliated. The exclusion of Russia from the said system means that the foreign commercial transactions of Russian banks will become more difficult.
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